Denmark’s GDP fell by 6.9 per cent in the second quarter of 2020, which was 0.5 percentage points less than previously expected, according to Statistics Denmark.
The decline still represents the largest quarterly decline since the early 1990s, but it signals at least more encouraging prospects for the rest of the year.
Strong recovery
The contraction did not come as a surprise, but this signals a stronger improvement than first assumed – with Tore Stramer, chief economist at Dansk Erhverv, describing GDP growth of 4-5 percent as “not unthinkable” in the third quarter.
On Monday, the government also announced a revision of its overall GDP forecast for 2020, cutting the forecast from -5.3 to -4.5 percent.
This came along with the confirmation of a ‘war chest’ of 9.2 billion kroner in support of struggling companies during the recovery.
Aldi joins the fight against food waste
Budget supermarket giant Aldi has teamed up with food waste company Too Good To Go to start selling ‘happiness bags’ consisting of excess fruit and vegetables at a reduced rate. Each bag contains products that are more than three times its selling price, and represents the latest in Aldi’s sustained efforts to reduce food waste. The scheme – which saves over ten tonnes of food waste during the trial period – was introduced nationwide on Monday.
Scheme of protection protection introduced
On Monday, the government announced a new scheme to support struggling companies in retaining their workforce following the conclusion of the wage equalization agreement on 29 August. The new ‘temporary division of labor’ gives relevant employees the opportunity to work fewer hours, share tasks with colleagues and receive greater unemployment benefits. It will be in place until December 31st.
Unemployment is falling again
For the second month in a row, unemployment in Denmark has fallen, which reverses the increase that occurred with lockdown at the start of the year. The figures from Statistics Denmark show that a further 5,500 entered the labor market from June to July, and this is a trend that is likely to be further supported by the introduction of the new division of labor.
Recovery errors do not break news for Danske Bank
A legal investigation has revealed that Danske Bank has been aware of some of the problems associated with its debt collection business since 1992. This comes just days after Vice President Rob de Ridder claimed that the bank had only become aware of issues at the beginning of 2019. Among other things, the study revealed an internal memorandum from 2008, which accurately describes the topics that have since emerged about the bank regarding the collection of obsolete and excessive debt.
Scandic reduces jobs
Two weeks after the announcement of 250 job cuts, Scandic has now announced that the number has been reduced to 190 redundancies. Successful negotiations with trade union representatives made the decline possible, but it is still a significant loss for a Danish workforce that numbered almost 2,000. The hotel chain has been hit hard by the corona crisis as a result of reduced tourism, not least because of the ‘six-day rule’, which was only recently abolished.
Record-breaking online sales
As Danes turn to the Internet for their needs for groceries, hygiene and health, online sales are booming. The need to be well-fed and well-occupied has led to a record-high online turnover of DKK 74.7 billion, as online sectors affected by the crisis are more than compensated for by the new emerging online markets.
Arla thrives in the midst of chaos
Despite a downturn in the corona, Arla delivered a strong result in the first half of the year – with revenue growth of 2.8 percent. Increased consumer demand coupled with a rapid restructuring of production and delivery processes ensured the success of the dairy giant.
Property values were delayed again
The Minister of Taxation, Morten Bødskov, revealed last night that the new assessments of housing will not take place until the summer of 2021. These valuations determine the amount of tax that people pay, and are now delayed six times. With previous reports showing that as many as 800,000 have paid too much property tax since 2011, the delay has been met with great annoyance.
Lego on an international stage
At a time when other toy manufacturers are struggling, Lego has confirmed an impressive 7 percent revenue growth in the first half of the year. Its temporary turnover of 3.9 billion. Kroner was largely driven by double-digit growth rates in a number of global markets as well as a strategic turn towards online sales.
Houses for sale reach another record level
Low supply means that there is a record low number of houses for sale in all Danish municipalities except 10 percent. It is at its lowest level in ten years – 15 percent lower than the figures from this time last year.
Source: The Nordic Page
